NASSAU, BAHAMAS — Bahamian manufacturers have said supply chain issues and limited purchasing power continue to present challenges in securing the necessary raw materials for their businesses.
Jonathan Cartwright, president of the Bahamas Light Industries Development Council, told Eyewitness News that local manufacturers have seen significant cost increases in raw materials amid rising inflation and stiff competition.
“We have our share of challenges for sure, perhaps even more so than local retailers,” said Cartwright, who is also president of Cartwright’s Bedding Co.
“When it comes to purchasing raw materials, we are oftentimes competing for resources with large manufacturers from much larger countries that have greater purchasing power.
“We’ve been impacted by supply challenges as well.”
Cartwright added: “The VAT (value-added tax) reduction from 12 to 10 percent was a help, but that has really been offset by a number of other factors.
“In this environment, consumers are also obviously more price-conscious. If they can save an extra $20 or $50 dollars, of course they will try to as that money can be used to purchase something else.
“It’s a tough market.”
Cartwright noted that in mattress manufacturing, he has seen significant cost increases in a number of materials.
“Lumber went up like crazy last year. It’s come back down now but that was a big challenge,” he said.
“Nail prices have also gone through the roof.
“The mattress foam is petroleum-based and the cost of that has gone up as well.
“These are all increases that have to be accounted for. Shipping is also another challenge we have faced, just like the other retailers.”
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